A marathon auction

The five-storey building at 220 Bourke St has been sold for more than $15million after a record-breaking auction process.

The two-hour bidding war with 661 bids from eight parties out of a crowd of 300 people in April saw the high-profile property next to Target Centre sold more than $4 million beyond its reserve price.

The low-rise mixed-use building fronts both Bourke St and LaTrobe Place and provides direct access to Little Bourke St and Chinatown.

Colliers International oversaw the transaction and said the rare freehold investment was second to none.

“Opportunities of this kind in the heart of the Melbourne CBD are rare and as such, we witnessed a hot contest that exceeded even our expectations,” Colliers’ Oliver Hay said.

“The incredible result can also be attributed to a combination of low interest rates, strong presence of cash buyers and local buyers who were willing to fight ferociously to get their hands on an asset that hasn’t hit the market in 80 years,” he said.

There is potential for the top two floors of the building to be converted from private residential use to commercial space.